diff --git a/README.md b/README.md
index 759a9187d8..6a8fa61890 100644
--- a/README.md
+++ b/README.md
@@ -167,10 +167,15 @@ To specify which GPUs to use set environment variable `CUDA_VISIBLE_DEVICES`.
 
 ## SGLang
 
+
 ```
-# Install libnuma
+# Install libnuma-dev
 apt install -y libnuma-dev
 
+# Install flashinfer-python pre-release (required by sglang for optimized inference)
+uv pip install "flashinfer-python==0.2.9rc2" --prerelease=allow
+
+# Install ai-dynamo with sglang support
 uv pip install ai-dynamo[sglang]
 ```
 
diff --git a/container/Dockerfile.sglang b/container/Dockerfile.sglang
index 8557684096..620cad6a3e 100644
--- a/container/Dockerfile.sglang
+++ b/container/Dockerfile.sglang
@@ -378,8 +378,6 @@ RUN --mount=type=bind,source=./container/launch_message.txt,target=/workspace/la
     sed '/^#\s/d' /workspace/launch_message.txt > ~/.launch_screen && \
     echo "cat ~/.launch_screen" >> ~/.bashrc
 
-ENV PYTHONPATH=/workspace/dynamo/components/planner/src:/workspace/examples/sglang/utils:$PYTHONPATH
-
 ########################################
 ########## Development Image ###########
 ########################################
@@ -446,7 +444,10 @@ RUN apt-get update && \
 COPY --from=ci_minimum /workspace/target/release/metrics /usr/local/bin/metrics
 COPY --from=wheel_builder /workspace/dist/*.whl wheelhouse/
 COPY --from=base /workspace/wheels/nixl/*.whl wheelhouse/
-RUN uv pip install ai-dynamo[sglang] --find-links wheelhouse
+
+# Install flashinfer-python pre-release version separately, then install ai-dynamo with sglang support
+RUN uv pip install "flashinfer-python==0.2.9rc2" --prerelease=allow && \
+    uv pip install "ai-dynamo[sglang]" --find-links wheelhouse
 
 # Copy launch banner
 RUN --mount=type=bind,source=./container/launch_message.txt,target=/workspace/launch_message.txt \
@@ -466,7 +467,5 @@ RUN uv pip install /workspace/benchmarks
 # Copy attribution files
 COPY ATTRIBUTION* LICENSE /workspace/
 
-ENV PYTHONPATH=/workspace/examples/sglang/utils:$PYTHONPATH
-
 ENTRYPOINT ["/opt/nvidia/nvidia_entrypoint.sh"]
 CMD []
diff --git a/container/Dockerfile.sglang-wideep b/container/Dockerfile.sglang-wideep
index 0bbcb3af23..c8746ceb9d 100644
--- a/container/Dockerfile.sglang-wideep
+++ b/container/Dockerfile.sglang-wideep
@@ -121,7 +121,7 @@ ENV CARGO_BUILD_JOBS=${CARGO_BUILD_JOBS:-16}
 RUN cargo build --release
 
 RUN cd lib/bindings/python && pip install --break-system-packages -e . && cd ../../..
-RUN pip install --break-system-packages -e .
+RUN pip install --break-system-packages .
 
 RUN wget --tries=3 --waitretry=5 https://github.com/nats-io/nats-server/releases/download/v2.10.28/nats-server-v2.10.28-${ARCH}.deb && \
     dpkg -i nats-server-v2.10.28-${ARCH}.deb && rm nats-server-v2.10.28-${ARCH}.deb